Energy storage developer Eos Energy Enterprises (EOSE) is up 295% over the past year, on the back of increasing demand for stable energy solutions to power AI platforms. One trader sees the stock pulling back in 2025.
That’s based on the January 2026 $2.50 puts. With 382 days until expiration, 18,350 contracts traded compared to a prior open interest of 612, for a 30-fold rise in volume on the trade. The buyer of the puts paid $0.72 to make the bearish bet.
Eos shares recently traded for just over $5, so shares would need to drop by just over 50% for the trade to move in-the-money.
Given the volatility that often occurs in AI-related stocks, such a move is certainly possible for a small-cap play. Eos itself has a 52-week low of just $0.61.
Eos is also an early-stage company, and while revenues rose 25% over the past year, Eos still operates at a substantial loss.
Action to take: Eos Energy is an interesting concept, and long-term investors may like shares after a pullback. For now, shares are well into overbought territory, and investors should look to buy shares when they’re well under their 50-day moving average.
For traders, the January 2026 $2.50 puts have plenty of time to play out, but a short-term pullback in the coming months could translate into a quick mid-double-digit return.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.